31A-22-716. Required provision for notice of termination.
(1)
A group insurancepolicy offering accident and health insurance or a blanket insurance policy offering accident and health insurance shall include a provision that obligates the policyholder:
Terms Used In Utah Code 31A-22-716
Accident and health insurance: means insurance to provide protection against economic losses resulting from:
a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
Member: means a person having membership rights in an insurance corporation. See Utah Code 31A-1-301
to give written notice of termination to each employee or group member 30 days before the day on which the policy terminates; and
(b)
to notify each employee or group member of the employee’s or group member’s rights to continue coverage upon termination.
(2)
(a)
An insurer’s monthly notice to the policyholder of premium payments due shall include a statement of the policyholder’s obligations as set forth in Subsection (1).
(b)
Insurers shall provide a sample notice to the policyholder at least once a year.
